Misrepresented contract Sportsback not satisfied!

[pukii02]

To me does sound as if you have been taken advantage of. I think you should talk to the dealer principal. You haven't taken delivery of the car have you?

[TheLoanMan]

I still feel the person who arranged your finance has breached the consumer credit code, by not showing you the repayment amounts and terms and conditions before he got you to sign the contract. It will be interesting to see what the ombudsman rules.

There would be no argument about the car purchase contract being valid if you had ensured that the word "suitable" finance was put in the finance clause. Then you would have needed to find out all about the finance before you deemed it suitable.

I would suggest, knowing Capital, that they will be extending the term of the loan to reduce the payment, rather than letting you off paying $200p.m., unless the Ombudsman rules in your favour and says that there is such a severe breach of the consumer credit code and nullifies the debt, which will mean you dont have to repay the loan.

The consumer credit code was bought in practice to stop this sort of high pressure tactic.

If I ran my business this way I would go broke.

[lancer2008]

Ok. Just updating.

Capital Finance has made an offer to reduce repayments.
Remember their initial offer was a reduction of only $10 a month on a $650 repayment.
Their newest offer is ~$440 per month a reduction of $200 a month at no cost to me to create a new contract.

As part of the response from Australian Motors/Capital Finance they have listed the order of events.

Events are listed from the day of the finance signing ( a week later).

Here is the confusing bit.

The 4th point is "Finance was approved by Capital Finance Australian Limited (as per the installments that were discussed with Lancer 2008) and as the contract of sale was -subject to finance approval- the contract hence became legally binding. Australian Motors then proceeded to prepare the vehicle for delivery."

As the words Subject to fiance approval appear in a special condition box and not part of the original sale of contract, I dispute the legality of the contract. Why would a car company add this clause would it not be already printed as part of the contract text. If this is an alteration of the contract in the special conditions box, one would think that this was on the clients behalf.

So the dispute over whether the wording added in the special conditions box was for the client or for the finance company.

I have also noticed they they have declined to comment of whether they though that this text was added on behalf of the client of the finance company.

It is my claim that the wording was added for myself so that I could look at fiance with out being legally binded as I did not know how much this was going to cost until all aspects of the sale were discussed.

As I said previously Sxx the dealer congratulated me for buying the car after signing a sale of contract and it was from this point I feel I was misled.

You can see from the finance response letter that they did indeed pursue the idea that I was legally bounded from the moment of the signing of the sale of contract misleading stating that the finance company would approve this and then I would be legally bound!
When was I given the chance to approve the finance. Before the finance discussion or after signing a sale of contract with added special conditions?
Why does the finance company get to approve how much I spend even before I know all of the costs.

When is then usual point where a car dealer says congratulations and then hand you a basket of gifts as part of the the sale!!! Is it when someone get their finances in order so they can get organize or do they do this even before you know exactly how much you are going to pay.

The Ombudsman office is looking into the matter and will make a decision in the next week or so.

[lancer2008]

This is Australian Motors in Morphett Vale but the finance guy said he worked in several outlets.

Sorry to hear that the same thing is happening to other people.

It would be good If customers had a chance to view all finance charges before signing a sale of contract. Otherwise you do not know what amount of money repayments you are signing for!

[lancer2008]

I went to the Legal services commission. The lady there was very nice. She said the sales and finance guy had acted in an unconscionable manner.

She said though because of the time lapse she couldn't help directly and advised me to complain through the Finance Ombudsman and Consumer affairs.
I have contacted the Finance Ombudsman who sent an email that day and suspended payments for 3 months to give Capital Finance a chance to investigate my claims.

Many phone calls later I spoke to the lady that is investigating my claims.
It is interesting to note that she said I have not contacted the finance company previously but I feel very strongly that I rang them and advised them that the contract may have been illegal.
The guy I spoke to at that time (from Capital) said that the documents were signed correctly and everything was in order (according to him).
It is only after sending a complaint through the ombudsman that I am getting any real investigation of my claims.

Notice how Australian motors have not commented on here in regards to this matter. They must be shy!

The next step is to write to consumer affairs but it is a slow process for me due to my current situation.

[mazda2009]

I was wondering if the Australian Motors you refer to is at Edwardstown.

I had a similar experience with a new Mazda. The salesperson was extremely deceptive to gain a sale.

Anyway, I hope the financing of your car worked out OK.

[katiesymon]

You cannot be asked to sign a Sale Contract for a new car as a condition to viewing the finance figures.

Whats the bet the finance figures were expensive in this case.

Check also to see if the Finance person was licenced to do the job. Compliant people are usually licenced. Request a copy of the application made on your behalf so you can check that the finance was obtained correctly. Finance Regulation is absent in some states and if we had a whole forum on this one topic I'm sure we would all be shocked. Including me. Its very tiring making complaint if you can follow the time and procedures good for you. If you decide to walk away it may just become a lesson for you. Hope you find an answer either way.

[lancer2008]

Did I read the from properly. I guess not.
This was the first time I had ever bought a new car. I had never seen that form before in my life's experience.

All I asked to do was look at finance figures.
So why did the sales guy then put a contract to buy a new car in my face.

My word against his of course.

If someone said to you to look at finance figures you have to sign this would you do it? Did I want to look at finance figures? Yes!

It was my mistake to trust him when I asked him If I sign this does it mean I am buying a car (to which he replied no).


I also complained immediately to 3 people, and later told the finance guy ( a week later) that I was not in a good situation to buy a car, and that I was not happy going through with the purchase.

I have been under the impression that new laws are being passed in Australia regarding financing to protect consumers from high pressure sales.

[tweettee]

Did you read what you were asked to sign?

[lancer2008]

I told the sales guy this was not the car for me as there was a cheaper model available.

I said I was prepared to look at finance figures though as I needed to buy a car and was looking at my options.

I was told to look at financing I had to sign a form. I asked the sales guy verbally that If I signed this did it mean I was buying the car.

He said "no" so I signed it so I could look into how much per week buying a new car could potentially cost.

As soon as I signed it, he congratulated me on buying a new car.

I felt that he misled me and now I certainly know that you can't put your trust into these guys even If they do seem helpful or friendly. They don't really car about the customer at all. They only care about themselves.

I immediately complained to 3 separate people but was told it was too late to back out of the deal.

A week later I had to go back and do the financing. I was under the impression that I could be liable If I did not try to secure the finance and so did not withhold any information.

I actually told the finance guy I felt very uncomfortable about buying the car, felt duped and told him my situation which was difficult.

I would just like to add that when you have mental depression, it can really slow you down and impaor your decisions.


I would like to see the finance industry regulated tightly to protect people from this happening to them.

A) A sale of contract is not valid until the full payments of the car is negotiated. (for me this process was a whole week later). I did ring legal aid to get advice but it did not help at all.


B) Finance/Sale must not be made under duress, or by deception.

C) A caryard must tell the buyer their rights they are entitled to, even If it means not making a sale.

D) I did ring the finance company and made an official complaint. They have not replied with a satisfactory report of looking into my claims.
Official complaint recognition and reporting should be made in writing.

Just my thoughts on the industry.

Do you know If any of the new finance laws protect people from this happening?

Do you think I should make a complaint about Capital Finance company on this website because I feel they have failed to investigate my claims?

[tweettee]

While I sympathize with your situation, I don't understand why you signed anything that looked even remotely like a contract when you were fairly certain you couldn't afford it. I am curious as to what you thought you were signing. Surely alarm bells would have been ringing when it started becoming apparent that this was a contract for sale with clauses because regardless of these clauses, it was still a contract to purchase a car you were more than likely unable to afford.
And with regard to SOTD's comment about consumer education, when I was in year 10 (nearly 20 years ago) we actually did a subject called Consumer Education and one of the topics was about buying a car as well other contract related matters. It was one of the most valuable subjects I have ever done.

[lancer2008]

SOTD

Re your comment...
So please excuse the arrogance but you are either young, uneducated (check my spelling lol) or stupid.

Actually I suffer from depression! Does this count as stupid! Does this mean it is fair to take advantage of someone!

[lancer2008]

I also paid for fabric protection ($1400). I went to the car yard and told them there was a hole in the boot of the car after just having it for 3 weeks. The hole was formed from putting my musical instrument in the back of the car. The fabric is really quite weak and not at all sturdy as shown in the LANCER advertising where all sorts of things are being thrown into the back of the car.
Now I drive around with a rug in the back of the car to protect it because Australian Motors wont fix it under the fabric protection policy.
They say that rubbing does not count as damage. A hole does.
Ask yourself how is a hole formed or a rip or tear. Could it be from something applying pressure to it and therefore tearing the delicate fabric used in the LANCERS.

[lancer2008]

I wonder from your attitude If you are from Australian Motors! .....SOTD
This comment has only appeared after I rang the finanace company and after the car yard ringing me to see If I wanted to reduce my repayments by $10 per moth (hardship lol) or sell the car and lose more money.

[SOTD]

I'm unaware of your age but when i was a youngster i was told never to sign anything and i mean ANYTHING unless i was sure of what i was signing and only an idiot would do so. So please excuse the arrogance but you are either young, uneducated (check my spelling lol) or stupid. If your not young....well...go figure.

I always sit on the fence and there are always two sides to every story. To all the people who make comments like " what goes around comes around ", God help Lancer 2008 if his side of the story lacks some truth if any.

I believe the only way for people to avoid being bound unfairly by contracts is to introduce some form of education at schools regarding contract law.

Contracts are a great tool, realy they are in place to protect sellers as well as purchasers. Use this tool and use it well.